Minnesota minimum wage will increase 2.5% to $11.41 per hour on Jan. 1
Minnesota's statewide minimum wage will increase 28 cents to $11.41 per hour on Jan. 1, a 2.5% increase based on the annual rate of inflation.
The minimum wage applies to virtually all employees since the Democratic-controlled Legislature eliminated a lower minimum wage for small businesses, workers younger than 18 and workers on J-1 visas in 2024. (As before, tips cannot be counted toward the minimum wage.)
Only workers under 20 years old in their first 90 days of training may receive a lower wage of $9.31 per hour starting in 2026.
Minneapolis and St. Paul each have higher minimum wages of $15.97 per hour, which will increase with inflation in 2026. Small and micro businesses in St. Paul may pay a lower minimum wage, but the city is phasing in a single minimum wage for all employees by 2028.
Minnesota's minimum wage is higher than most of its neighbors' (save South Dakota), but it isn't enough to cover basic living expenses. The cost of living for a childless, working-age adult requires earning $17.68 per hour, according to the state Department of Employment and Economic Development. A household with two children requires two parents earning at least $24.25 per hour.
The federal minimum wage of $7.25 per hour has remained unchanged since 2009 and is the effective minimum wage in 20 states, including Wisconsin.
Minnesota's minimum wage has been indexed to inflation since 2018 but was limited to annual adjustments of 2.5% until last year when lawmakers raised the threshold to 5% to ensure the lowest paid workers receive larger raises in periods of high inflation.
The increase will directly affect a relatively small number of workers. Fewer than 90,000 salaried and hourly jobs out of more than 3.3 million in Minnesota were paid at or below the minimum wage in 2023, according to the state's latest minimum wage report. Still, a rising minimum wage puts upward pressure on jobs paying just above minimum wage, creating a ripple effect across a larger number of workers.
Solve the daily Crossword
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Buzz Feed
19 minutes ago
- Buzz Feed
Hannity's Ironic Critique Of Newsom Goes Viral
Sean Hannity's attempted slam of California Gov. Gavin Newsom (D) was irony defined for many of the Fox News host's critics. Fox News On Wednesday, Hannity devoted several minutes of his prime-time show to attacking Newsom, who has recently taken to trolling Donald Trump on social media by mimicking the president's bombastic and combative tone. Fox News Top Trump ally Hannity denounced Newsom, a potential 2028 Democratic presidential contender, as a 'radical' whose policies had wrecked California and dismissed his Trump impersonations as 'embarrassing.' Fox News Then came the line that went viral: 'I have a point. Results matter. A new performative, confrontational style. Maybe it wins you points with the loony, radical base in your party. But America is not going to vote for that record.' Fox News You can watch the full clip here: Hannity: A performative confrontational style—maybe it wins you points with the loony radical base in your party but America is not going to vote for that record. — Acyn (@Acyn) August 21, 2025 @Acyn / Fox News / Via Critics pounced on the remark, arguing it sounded more like a description of Trump — and Hannity himself — than of the governor. The irony of not knowing what a mirror is. — Truthstream Media (@truthstreamnews) August 21, 2025 @truthstreamnews / Via That's rich coming from Hannity, a guy whose entire career is built on performative confrontation. It's like McDonald's telling you not to eat fast food. He's out here critiquing 'loony radical bases' while serving as the maître d' at the all-you-can-eat grievance buffet every… — Nate Lichtman (@27KeysToTheRace) August 21, 2025 @KeysToTheRace / Via I R O N Y 😂 — jp (@ChefjparkJohn) August 21, 2025 @ChefjparkJohn / Via Is their audience that unaware? — 𓂀 𝕨𝕙𝕒𝕥𝕖𝕧𝕖𝕣 𓂀 (@marysupoppinz) August 21, 2025 @marysupoppinz/ / Via Irony is dead. — Jason P. (@JasonPYYC) August 21, 2025 @JasonPYYC / Via Hannity should know better, since he's part of the loony radical base of the party which elected just such an antagonistic, confrontational person President. — Robert Firsching (@robfirsching) August 21, 2025 @robfirsching / Via
Axios
19 minutes ago
- Axios
U.S. Rep. Lloyd Doggett of Texas says he'll bow out if redistricting stands
Longtime Austin Democratic congressman Lloyd Doggett said Thursday that he won't seek reelection if new congressional maps are not overturned by courts. Why it matters: Doggett's move prevents a potentially nasty Democratic primary in the wake of a Republican redistricting effort, allowing U.S. Rep. Greg Casar, D-Austin, a rising progressive, to remain in power. State of play: Casar and Doggett would have battled for a single Austin-based district under the new congressional map that the Texas House approved on Wednesday and which the Senate is expected to pass soon. Gov. Greg Abbott has said he'll sign the legislation. Doggett, who has been repeatedly targeted by Republicans in redistricting during his over 30 years in Congress, currently represents much of Austin and its suburbs. Casar, a former Austin city council member first elected to Congress in 2022, represents parts of southern and eastern Austin in a district that snakes down to San Antonio. Flashback: In a campaign email nearly two weeks ago, Doggett wrote that "seniority is an asset, not a liability." He urged Casar to "not abandon" his reconfigured district, arguing that Casar could "use his organizing skills and populist message to win over the disaffected, particularly disaffected Hispanic voters." What they're saying: Unless the new maps are overturned by courts, "I will not seek reelection," Doggett said in a statement Thursday. "I had hoped that my commitment to reelection under any circumstances would encourage Congressman Casar to not surrender his winnable district to Trump." "While his apparent decision is most unfortunate, I prefer to devote the coming months to fighting Trump tyranny and serving Austin rather than waging a struggle with fellow Democrats." On X, Casar wrote: "Lloyd Doggett is an Austin institution. I've learned so much from him. I'm grateful to him. The fight for democracy continues." The big picture: The new map could give Republicans an additional five seats in Congress. Democrats say the map disenfranchises Black and Latino voters.
New York Times
20 minutes ago
- New York Times
Minnesota's Democratic Party Revokes Endorsement of Mayoral Candidate
It was a rare triumph for the democratic socialist candidate seeking to unseat the mayor of Minneapolis. After a chaotic party convention held last month, State Sen. Omar Fateh clinched the endorsement of the local Democratic Party, becoming the first mayoral candidate in the city to get that support since 2009. But the edge was short-lived. On Thursday, Democratic Party officials in Minnesota took the rare step of withdrawing the Minneapolis chapter's endorsement, citing 'substantial failures' during the convention, which was marred by technological and procedural irregularities. The decision was a blow to Mr. Fateh's candidacy, which has drawn national attention because of comparisons to the mayoral race that has electrified New Yorkers. Like Zohran Mamdani, who won New York's Democratic primary in an upset in June, Mr. Fateh is a young state legislator seeking to steer his city to the left by taxing the rich to build affordable housing, putting caps on rent increases and overhauling how public safety resources are spent. Both men are democratic socialists, Muslim and have African roots. Mr. Fateh, 35, is challenging Mayor Jacob Frey, a two-term incumbent who has raised significantly more money. The endorsement of Mr. Fateh stood to make party resources and valuable voter databases available to his campaign. Want all of The Times? Subscribe.
